Debit purchases, Credit trade payables is the correct double entry to record goods purchased on credit for resale in a retail business.

Name: Debit purchases, Credit trade payables is the correct double entry to record goods purchased on credit for resale in a retail business.
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Question

Quizplus · Accepted Answer

This double entry reflects an increase in inventory (debit purchases) and an increase in liabilities (credit trade payables), accurately recording the transaction of purchasing goods on credit for resale.

Debit Purchases, Credit Trade Payables Is the Correct Double Entry